Archive for January 2017

Developer to pay up for no delivery of flats: Mohali consumer forum

Bajwa developer was using funds of the complainant for other profitable business which amounts to unfair trade practice.

Developer to pay up for no delivery of flats: Mohali consumer forum
MOHALI: District Consumer Disputes Redressal Forum, Mohali, decided four cases of non-delivery of possession of flats of similar nature and directed Bajwa developer to refund the deposited amount by complainants. In the first case, Diksha Jagota, a resident of Sector 71, Mohali, won the case and Bajwa Developers was directed to refund Rs 3 lakh and compensation of Rs 30,000. All cases decided in one day have the same facts, same sector and same complaint. Diksha booked 1 BHK flat in F21, Sector 74A, 117, Mohali, for value of Rs 12 lakh with Bajwa developer, having area of 450 square feet.

An agreement was entered into between parties on August 26, 2012. Diksha paid first installment of Rs 3 lakh to the developer and she was assured that possession of the flat would be handed over by 2014 end. As per schedule of payment given in the agreement, the final payment was to be made by the complainant in 2014 that is at time of giving the possession. However, Bajwa developer has neither offered possession of the flat nor demanded further installments from the complainant. The complainant visited the site and found that no construction is being done by the developer there and developer have received letter of CLU from the GMADA that they have illegally received the payment from the complainant in 2012 when they were not having any sanctions from the competent authorities for the flat to be handed over to the complainant.

Bajwa developer was using funds of the complainant for other profitable business which amounts to unfair trade practice. On the other hand, Bajwa developer before the court contended that the complainant has committed default in making payment of installments as she had agreed to pay the installments within the stipulated period as per the agreement to sell. Court after hearing arguments directed Bajwa developer to refund deposited amount of Rs 3 lakh, Rs 30,000 for mental harassment and the litigation cost.

The court decided three other cases of similar nature, with same facts, and directed Bajwa developer to refund the deposited amount plus compensation for harassment and litigation costs. Arvinder Singh and Mohinder Singh, residents of Phase 1 Mohali, had applied for 1BHK flat in sector 74 Mohali.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

DPCC president Ajay Maken assures Noida homebuyers

The homebuyers of Greater Noida West met Ajay Maken at the AICC headquarters to discuss several points related to the adoption of the Real Estate Regulatory Act in UP which is still due to be adopted in the state.

DPCC president Ajay Maken assures Noida homebuyersNOIDA: Delhi Pradesh Congress Committee president and former Union minister of urban and housing development Ajay Maken on Sunday assured homebuyers of Noida Extension that the party may include the home buyers’ issues in the party manifesto for the upcoming UP polls.

Talking to TOI, after the buyers met the former minister at the Congress headquarters, Maken said, “I met the buyers of Noida and since pushing the RERA has been our effort and since Rahul Gandhi has always kept the homebuyers’ agenda in mind, we will take up the buyers demands for an internal discussion ahead of the elections. A possible inclusion of the homebuyers’ issue in the manifesto will be discussed with Mr Gandhi.”

The homebuyers of Greater Noida West met Ajay Maken at the AICC headquarters to discuss several points related to the adoption of the Real Estate Regulatory Act in UP which is still due to be adopted in the state.

“We appealed to the Congress leadership to adopt the homebuyers’ agenda in a supplementary manifesto for the upcoming elections. One of the major points at today’s discussion was that the RERA should not be diluted while being adopted in UP. We have also raised the issues of the inordinate delays in handover of houses,” Shweta Bharti, general secretary, Noida Extension Flat Owners’ Welfare Association, said after meeting the Congress leadership.

“By the time the next UP elections come, Noida Extension or Greater Noida West will host enough people to become a constituency in itself. Looking at that future, the political agenda for the future residents have to be paved. Our struggle to get our own houses and for the future residents have been immense and it has to find place in the political movement of any party contesting the upcoming elections in the years to come from the Noida region,” Abhshek Kumar, president Nefowa, said.

“It was a fruitful discussion with the Congress leadership. The homebuyers of Noida and their issues need to be included among the various other issues for the upcoming elections. Implementation of RERA in UP at the earliest is also one of our demands,” Indrish Gupta, co-founder, Nefowa said.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

DLF Noida mall in CBRE list of 22 best global retail projects

Global property consultant CBRE selected these elite properties based on their global stature as retail venues that best welcome and retain visitors.

DLF Noida mall in CBRE list of 22 best global retail projectsNEW DELHI: Realty major DLF Ltd today said that its shopping mall in Noida has been included in the CBRE‘s list of 22 best retail projects globally for creating an environment to attract shoppers and retain them.

In April last year, DLF formally opened its 2 million sq ft shopping mall in Noida, touted as one of the biggest in the country and built at an investment of Rs 1,800 crore.

India’s largest realty firm is expecting about Rs 225 crore rental income per year from the mall that houses 330 brands.

DLF Mall of India has yet again proved its mettle by being included in the elite 22 best retail projects across the globe for “Retail and Placemaking’ in a report released by CBRE,” DLF said in a statement.

The CBRE report spotlights 22 international retail projects, including DLF Mall of India, that illustrates the varied ways in which retail owners and occupants are creating unique consumer experiences today, it added.

Global property consultant CBRE selected these elite properties based on their global stature as retail venues that best welcome and retain visitors.

The report defines retail’s role in the growing trend of placemaking, as retail centres across the globe strive to create environments that attract shoppers and keep them returning amid the expanding culture of online shopping.

Commenting on this, DLF’s CEO (Rental Business) Sriram Khattar said: “It has always been our endeavour to build world class projects for our customers that stand a class apart, DLF Mall of India is a testament to our commitment.”

Pushpa Bector, Executive Vice President & Head Premium Malls of DLF Utilities Ltd, said, “This has endorsed our brand philosophy which is to create world-class projects that delight our retailers and visitors with versatility, variety and premium quality.”

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

RERA will not be diluted: Rajnath Singh to homebuyers of Greater Noida West

Nefowa had met senior Delhi Pradesh Congress Committee president and former Union minister of urban and housing development Ajay Maken on Sunday over the issue.

RERA will not be diluted-Rajnath Singh to homebuyers of Greater Noida WestNOIDA: Homebuyers of Greater Noida West (Noida Extension) met Union home minister and senior BJP leader Rajnath Singh on Monday, who assured them that irrespective of the result of the UP polls, the Real Estate (Regulation and Development) Act, 2016 (RERA) will not be allowed to be diluted in the state.

“We met Rajnath Singh and expressed our fear that RERA may get weakened in UP, with various pro-buyer measures being ignored while being adopted,” Kumar, president of Noida Extension Flat Owners Welfare Association (Nefowa), told TOI, adding that “irrespective of which party forms the government, RERA will not be allowed to be diluted in UP.”

Nefowa had met senior Delhi Pradesh Congress Committee president and former Union minister of urban and housing development Ajay Maken on Sunday over the issue.

“We are approaching all political parties so that homebuyers’ issues and concerns are kept in mind when the government is formed after the election,” Shweta Bharti, general secretary, Nefowa, said.

RERA, passed by the Union government and adopted in several states, is due for adoption in UP. The Act is expected to prevent several malpractices in the real estate business and bring about transparency in the sale and purchase of property.

RERA will not be diluted-Rajnath Singh to homebuyers of Greater Noida West

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Selling a house? Watch out for tax implications

Selling a house means a large cash inflow. Here’s how to ensure that you don’t end up with a huge tax liability when you do so.

Selling a house-Watch out for tax implicationsIt’s critical to keep an eye on the calendar when you sell your house. If you don’t time it well, you could end up paying a hefty tax. If a property is sold within three years of buying (acquiring) it, any profit from the transaction is treated as a short-term capital gain in the hands of the individual. This is added to the total income of the owner and taxed according to the slab rate applicable to him. For those earning over Rs 10 lakh a year, this shaves off 30% of the profits from the sale consideration.

Also, if a house property is sold within five years of the end of the financial year in which it was purchased, the tax benefits claimed go out of the window i.e. tax benefits which were claimed earlier will have to be reversed. The tax deduction claimed for the principal repayment, stamp duty and registration under Sec 80C are reversed and the amount becomes taxable in the year of sale. Only the deduction of the interest payment under Section 24B is left untouched.

This is why, from the tax point of view, it is advisable to hold a property for at least three years. If you sell a property after three years, the profit is treated as long-term capital gains and taxed at 20% after indexation. Indexation takes into account the inflation during the holding period and accordingly adjusts the purchase price, thereby slashing the tax burden for the seller. There are other benefits too. The owner can claim various exemptions in case of long-term capital gains, but no such benefit is provided for short-term gains.

“Expenses incurred on repairs and renovation can be added to the cost of acquisition of the house while computing long-term capital gains. Also, the interest paid during the pre-construction period of the house can be added to the cost, if not already claimed as a deduction earlier,” points out Vaibhav Sankla, Director, H&R Block India.

How to avoid tax
There are several ways to avoid paying tax when you sell a house. There is no tax to be paid on the gains, if you use the entire gain from the transaction to buy another house within two years or construct another house within three years. The two- and three-year period applies even if you bought another house a year before selling the first one. But the property should have been bought in the name of the seller.

In case the entire capital gains are not invested, the balance amount is charged to longterm capital gains tax. However, the entire tax exemption will be reversed if the new property is sold within three years of purchase or construction. In such a case, the entire capital gains from the sale of the previous house will be considered as short-term gains and taxed at the normal slab rates.

If you are not keen to lock-in your gains from sale of the house in another property, there is another way out. You can claim exemption under Section 54 (EC) by investing the long-term capital gains for three years in bonds of the National Highways Authority of India and Rural Electrification Corporation Limited within six months of selling the house. However, one can invest only up to Rs 50 lakh in these bonds in a financial year.

From the current financial year, sellers also have the option of investing the entire longterm capital gain in a technology driven start-up (certified by the Inter-Ministerial Board of Certification) to get relief from tax. The investment in computers and software for your start-up will be allowed to claim exemption of tax on sale of house held for at least three years.

Apart from this, sellers also have the option to set off the long term capital gains from sale of the house against any long-term loss from the sale of other assets. These can be losses carried forward over the past eight years or even those incurred in the same year. However, to avoid tax on short-term capital gains, the only way out is to set it off against any short-term loss from the sale of other assets such as stocks, gold or another property.

Dealing with TDS
To plug tax leaks, the government has now made it mandatory for buyers to deduct TDS when they buy a house worth over Rs 50 lakh. TDS of 1% of the value of the property has to be deducted before making the payment to the seller. “Make sure that the buyer deposits the amount with the tax authorities on your behalf so that you can claim credit for the payment,” asserts Sankla.

Till last month, this amount was required to be deposited within seven days from the end of the month in which the sale transaction was done. But from 1 June, the period has been extended to 30 days. Since this payment is made on behalf of the seller and linked to the seller’s PAN, it is reflected on the seller’s Form 26AS under the head ‘Part F’, usually within seven days. The seller must also obtain a TDS certificate in Form 16B from the buyer.

The seller can claim a refund of the TDS if he is incurring a loss on the sale of the house or if he is claiming exemption from long-term capital gains under any of the ways mentioned earlier. To claim the refund, he should provide details of investment of the capital gains in his tax return. Else, he can also obtain a certificate from the assessing officer specifying that no TDS must be deducted on payments made to him and present this certificate to the buyer.

Tax tips for house sellers
1. If the cost of the new residential property is lower than the total sale amount, then the exemption is allowed proportionately. For the remaining amount, you can reinvest the money under Section 54EC within 6 months.

2. The exemption is still allowed even if the builder of the new residential construction fails to hand over the property to the taxpayer within three years of purchase.

3. The capital gains will be calculated on the basis of the valuation adopted by the state’s stamp duty and registration authority. The tax department may object if the actual sale value is lower than the valuation of the property by the state authority.

4. If you are unable to reinvest the gains in another house or bonds before filing your tax return for the year in which the sale took place, deposit the balance in the Capital Gains Account Scheme so that you are eligible for the deduction.

How indexation cuts tax
If a house was bought for Rs 30 lakh and sold for Rs 75 lakh five years later, 20% tax on Rs 40 lakh gain is Rs 8 lakh. But indexation and other benefits will reduce the tax to Rs 3.47 lakh. Here’s how it works.

House bought in 2009-10 Rs 30,00,000 Cost of adding a room in 2012-13 Rs 5,00,000 Indexed cost of acquisition Rs 51,31,329 Indexed cost of adding room Rs 6,34,390 Total cost of acquisition Rs 57,65,719 House sold in 2015-16 Rs 75,00,000 Long-term capital-gains Rs 17,34,281

Tax at 20% after indexation Rs 3,46,856

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Amendments have added teeth to benami act

Some of the action is directly related to the demonetisation drive, during which the tax department found evidence of funds being deposited in the bank accounts of others.

Amendments have added teeth to benami actThe income tax department has started cracking down on those with “benami“ assets, issuing notices in 87 cases and attaching 42 properties, including those allegedly linked to a retired bureaucrat, a paper mill owner and people associated with an education trust in South India.

Some of the action is directly related to the demonetisation drive, during which the tax department found evidence of funds being deposited in the bank accounts of others.For instance, tax department sources alleged that the paper mill owner deposited money in the accounts of 780 employees. Similarly , the office bearers of a trust that runs medical and other colleges are accused of depositing Rs 2 -2.5 lakh or more in the accounts of around 40 employees. The action follows PM Modi’s promise of more measures after demonetisation, including the use of the Benami Transactions (Prohibition) Act, which was amended last year. Under the law, a transaction is termed “bena mi“ if the property is held by one person but has been paid for by someone else. Then there is the case of a retired IAS officer from Haryana, who is accused of acquiring an apartment which was registered in someone else’s name.

“A bulk of the cases relate to money in benami accounts,“ a source said. The tax department has been collating data to target those who may have sought to deposit old notes in bank accounts and try to convert black money into white. Already , several notices have been sent, the use of the benami property law is the latest move.

While the law to crack down on benami property was enacted in 1988, the amendments carried out last August empowered agencies to attach property and ultimately confiscate it. It also provides for rigorous imprisonment of one to seven years and a fine that can be up to 25% of the market value of the asset. The new law has enhanced the provision for imprisonment beyond three years and has been effective since November, when Modi announced demonetisation of the old Rs 500 and Rs 1,000 notes.

The fresh offensive is meant to deal with those who have opted to invest unaccounted funds in other assets, instead of keeping it in cash, and in the process deny the government its dues in the form of taxes

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Demonetisation dampens sentiments of real estate sector

The OSI index recorded a reading of -3 in the Q4 (October-December, 2016). It represents the weakest number reported for this indicator since the end of 2013.

Demonetisation dampens sentiments of real estate sectorMUMBAI: Demonetisation of high value currency notes of Rs 500 and Rs 1000 has dampened sentiments of the real estate sector across India, which until now had been comparably more upbeat than most markets in Asia, according to RICS’ Global Commercial Property Monitor.

Both the Occupier Sentiment Index (OSI-an index that shows supply, demand and rent expectations) and Investment Sentiment Index (ISI), an index capturing overall market momentum) readings turned negative in the National Capital Region and Mumbai after demonetisation, it said.

The OSI index recorded a reading of -3 in the Q4 (October-December, 2016). It represents the weakest number reported for this indicator since the end of 2013. Demand for retail property fell over this period. Office space was more sought after though the rate of demand growth appears to be moderating.

Said Sachin Sandhir, Global Managing Director – Emerging Business, RICS In India, said, “In India investment demand fell over the quarter, while demand from occupiers was stagnant, pushing both OSI and ISI readings into negative territory for the first time since 2013. While the Occupier Sentiment Index and Investment Sentiment Index stayed modestly positive in Bangalore, respondents said they have lowered their expectations for capital value and rental growth significantly over the next twelve months.

While capital value and rental growth are expected to increase, the pace of expected gains has moderated.”

The India Commercial Property Monitor asked respondents whether the policy move would have a negative impact on the office space sector. “Only around one quarter of respondents felt this to be the case. Rents are expected to show very little increase over the next next 12 months. The exception to this trend is the prime office segment of the market’’ said the report.

When asked whether respondents believed demonetisation would result in a drop in real estate prices, a significant minority (45%) said that this will be the case. On the other hand, a majority (51%) did not feel this would be the case, while the remaining 4% did not have a view at this stage. “Respondents expect a modest increase in capital values over the next twelve months with the headline projection scaled back from 4.5% to 2%. While some concern was expressed over the near term outlook linked to the demonetisation programme, the office sector is being seen as resilient enough to be able to withstand demonetisation,’’ it said.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Noida will change building bylaws to beef up fire safety

A committee of experts and civic officials has been formed for suggesting the new fire safety measures within a month.

Noida will change building bylaws to beef up fire safetyNOIDA: To ensure fast and easy evacuations in high-rises in case of a fire, authorities in Gautam Budh Nagar district will soon propose changes for the building bylaws.

A committee of experts and civic officials has been formed for suggesting the new fire safety measures within a month. The move follows a meeting between Rama Raman, Uttar Pradesh principal secretary, Industries and Noida Authority chairperson, chief executive officers of the three authorities (Noida, Greater Noida and YEIDA) and chief fire officer of the district in Lucknow on Friday.

“Presently we follow the National Building Code for implementation of fire safety measures in buildings. The plan is to strengthen the fire safety norms. Besides proposing stricter norms, we want to ensure safety of occupants in high-rises and protect property from fire,” Deepak Agarwal, CEO, Noida and Greater Noida Authority told TOI from Lucknow

Agarwal further informed that a committee comprising of fire experts from UP and Delhi, besides senior officials from the three authorities will study the proposal and submit a report. “A list of changes to our existing building bylaws for fire safety will be drawn up and a report will be submitted by the committee within a month. After that, the proposal will be examined in detail and it will be forwarded to the boards of the three authorities. Once approved by the boards, the proposal will be forwarded to the state government for final approval before implementation,” he explained.

The amendments would primarily aim to prevent fires, ensuring that necessary training and equipment is on hand, and that the original design basis of the building, including the basic plan set out by the architect, is not compromised. “Sanctioned layout building plans will have to adhere to the norms in respect to escape routes, setbacks, elevator standards. These norms will be implemented and enforced in public buildings including schools, colleges, hospitals, institutional buildings and residential buildings,” he added.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Relief to builders in Gurgaon & Faridabad as fire dept issues provisional NOCs for flats

The issue was part of the 20-point memorandum submitted by the NAREDCO team headed by its president Parveen Jain.

Relief to builders in Gurgaon and Faridabad as fire dept issues provisional NOCs for flatsCHANDIGARH: In a first-ever major relief to builders, the Haryana government on Monday announced the issuance of provisional noobjection certificates (NOCs) by the fire department with regard to construction of 15,000 flats in Gurugram and Faridabad districts.

Haryana department of urban local bodies officers said a meeting was organized with members of the executive committee of the National Real Estate Development Council (NAREDCO), an apex national body for real estate industry under the ministry of housing and urban poverty alleviation, at CM Manohar Lal Khattar’s residence.

The issue was part of the 20-point memorandum submitted by the NAREDCO team headed by its president Parveen Jain. Khattar flew in from Rohtak to meet the delegation, which included heads of almost all leading developers and builders operating in Haryana.

Earlier, the government had refused to rework the property tax formula as sought by the builders’ body. It, however, gave an assurance with regard to an advertisement policy for places developed and maintained by private builders. The urban local bodies department had been insisting on sharing the revenue from advertisements in areas developed by such colonizers.

“The meeting lasted for over three hours. We had a lot of issues to be discussed. The CM was kind enough to summon all department heads to discuss these. Some issues like fire clearances were resolved, while those solved on the spot included clearances for electricity usage and advertisements in colonies among others. This was a fruitful meeting,“ claimed Jain.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

Consumer court rules completion certificate cannot be substituted

The consumer court has sentenced Sajid Ismail, proprietor of Allied Constructions in Kondhwa Khurd, to pay Rs 10,000 fine within a fortnight for not fully complying with its order of February 24, 2011.

Consumer court rules completion certificate cannot be substitutedPUNE: The district consumer court has ruled that an occupancy certificate obtained without the consent of the flat owner cannot be substituted for a completion certificate in relation to a housing project.

The consumer court has sentenced Sajid Ismail, proprietor of Allied Constructions in Kondhwa Khurd, to pay Rs 10,000 fine within a fortnight for not fully complying with its order of February 24, 2011. The order required Ismail to hand over a completion certificate to the complainant, Renu Singh, owner of a flat in Allied Heights, Salunkhe Vihar Road.

“In case of failure to pay fine, Ismail will have to undergo a one-month simple imprisonment,” the bench of consumer court president V P Utpat and member O G Patil said in a ruling on Wednesday.

Singh had initiated an execution proceeding against the builder under Section 27 of the Consumer Protection Act. The same empowers the consumer court to try and sentence a person found guilty of not complying with its order.

Lawyer Laxman Jadhav, who represented Ismail, said: “We are in the process of complying with the consumer court’s latest order and have readied a demand draft of Rs 10,000 which will be submitted to the court on January 30.”

The builder had produced on record an occupancy certificate issued by Pune Municipal Corporation while arguing, among other things, that he could not obtain a completion certificate because the complainant made illegal changes in the flat.

The complainant, however, pointed out that completion certificate and occupancy certificate were two distinct documents and that, the flat owner’s consent was not obtained for the occupancy certificate produced on record.

The bench observed, “This forum had directed the accused/opposite party (builder) to handover completion certificate in respect of building. However, the builder has not produced any record to show that he has complied with the forum’s order.”

“It is also significant to note that the complainant (flat-holder) had never applied for an occupancy certificate. Hence, legitimate inference can be drawn that the alleged occupancy certificate is obtained by the builder without consent of flat holder and it cannot be substituted for completion certificate,” the bench said.

DISCLAIMER

The news and data posted here is from various sources, published and electronically available. We have taken all possible care to verify and crosscheck the accuracy of the same. However, despite due diligence, sources may contain occasional errors.www.noidapropertydealers.co.in will not be responsible for any errors in such an instance.

%d bloggers like this: